Two Republican federal lawmakers — U.S. Sen. Joni Ernst (R-Iowa) and Rep. James Comer (R-Kentucky) — are urging Comptroller General Gene Dodaro’s office to conduct an extensive examination of the distribution and oversight of government charge cards. The request follows the revelation by DOGE, or the Department of Government Efficiency, that federal charges from last year were made at “high-risk merchants,” such as casino ATMs, strip clubs, and online gambling establishments. 

In February, DOGE announced that the number of active federal government credit and debit cards exceeds the number of federal employees. In the 2024 fiscal year, roughly 90 million unique transactions were made using the 4.6 million active cards, resulting in spending of about $40 billion. 

Ernst and Comer, who leads the House Committee on Oversight and Government Reform, think there is a critical deficiency in the monitoring of expenditures. 

Audit Required 

In a letter to Dodaro from May 16, Ernst and Comer assert that a comprehensive examination of the charge card spending programs “is urgently required” to pinpoint systemic risks, eradicate inefficiencies, and reinstate accountability. 

“To better understand the scope of this issue and to inform potential reforms, we request the Government Accountability Office conduct a comprehensive review of the issuance and management of government purchase, travel, fleet, and integrated charge cards and accounts across federal agencies subject to the Chief Financial Officers Act of 1990,” the federal lawmakers wrote.

Ernst and Comer reference a report from the Department of Defense (DoD) Office of Inspector General (OIG) that identified 15,610 transactions involving “recognized high-risk merchants.” They encompassed casino ATMs, dating applications, bars, lounges, strip joints, and nightclubs. 

"We are skeptical these charges were for legitimate purposes or in service of the DoD’s mission for which the cards were issued,” the lawmakers stated.

"It is indefensible for Department of Defense bureaucrats to waste tax dollars at clubs, casinos, and bars, racking up charges on Super Bowl Sunday, St. Patrick’s Day, Cinco de Mayo, and federal holidays,” said Ernst in separate remarks. “With Washington $36 trillion in debt, the last thing we need is bureaucrats maxing out their tab and sticking taxpayers with the bill.”

Additional high-risk merchant fees were classified for sports wagering, amusement venues, cruise lines, fortune-telling services, golf facilities, country clubs, massage services, cannabis, and vaping items. 

Military Wagering Expenditures 

In January, Casino.org noted that federally issued charge cards for military personnel were utilized at casinos, online betting sites, and internet gaming services. The audit by the DoD revealed that Defense Department cards paid for over $500K in costs associated with gambling, nightclubs, and alcohol. 

The financial report disclosed that a service member took out nearly $11K during a visit to MGM National Harbor in Maryland, close to the nation's capital. The unnamed service member conducted 21 ATM withdrawals while there. Casinos feature ATMs that impose some of the steepest transaction charges. 

“This is not the first report DoD OIG has conducted in recent years, and the problem has not improved. This is because, as the DoD OIG has found, DoD officials have not effectively used policies, procedures, or anti-fraud systems such as the Visa IntelliLink Compliance Management system to effectively identify DoD government travel charge card abuse and fraud,” Ernst and Comer said.